The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

Even though many states are sweltering with 90 degree weather, the holiday shopping season is just around the corner. Toys R' Us made a big statement to holiday shoppers by dropping layaway fees. Two very troubled retailers, Kmart and Sears, followed the lead by dropping layaway fees all year round.

Copying another company's strategy isn’t always smart. Toys R' Us layaway program probably will bring consumers through its doors. The company has a loyal consumer base, continues to draw in consumers to the brick-and-mortar locations and online locations, offers a wide variety of products and maintains a positive store image. Unfortunately, Kmart and Sears do not possess these same attributes.

Using the BIGinsightTM Monthly Consumer Survey, consumers’ voiced their opinions regarding the purchase of toys; which retailer they prefer - Toys R' Us, Kmart or Sears. In 2011, 14.3% of the 8692 consumers nationwide shopped at Toys R’ Us for toys. Just one year later, 18.1% of the 9429 consumers responding to the survey flocked to this retailer. Clearly the company understood the needs and wants of its target market.

During 2011, only 1% of the sample purchased toys at Kmart. One year later the percent decreased to .08%. Tonka trucks and big wheels stayed on the shelves gathering dust. At least the retailer had better sales than at Sears. The sale of toys was virtually non-existent by this retailer.

Instead of copying other retailers’ ideas and actions, retailers are encouraged to think strategically about the needs and wants of its target market.

Ask your executives, employees and customers the following questions:

Why do you shop regularly at our store?

What would encourage you to shop more frequently?

What products or services are important to you in a store?

What attributes are the most important?

What store attributes make you loyal toward the retail store?

What attribute or characteristic in a store is a deal-breaker? In other words, why would you leave a store and never shop there again?

Once you find out the answers to the above questions, apply them to your store. Instead of copying another retailer’s strategies, make changes desired by your specific customer. Offer your customers something no other retailer offers. Once you identify your offering, sing about the changes from the highest rafters.